June 22, 2010
I had a large business loss last year How do I take the loss over a period of years-perhaps 6-10 years?
beachlover asked:
I owned a coffee shop that ended in bankruptcy. How do I take the $100,000+ loss over a period of years rather than in one lump sum on my taxes-IF it's possible. I used turbo tax last year and I thought it asked me if I wanted to deduct 10,340 per year and I said yes but this year it doesn't show any record of this. HELP!
Someone asked how I could have incurred such a large loss-well-I took a raw unimproved site and put in all the bells and whistles and ran it for a year. It doesn't take long to run up this type of debt. I would like to take the loss over a period of years but am not sure how to do this. My cpa hasn't been any help. Doesn't anyone have any knowledge of the tax law that turbo tax was talking about last year when I did my taxes? I can't afford another cpa!
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I owned a coffee shop that ended in bankruptcy. How do I take the $100,000+ loss over a period of years rather than in one lump sum on my taxes-IF it's possible. I used turbo tax last year and I thought it asked me if I wanted to deduct 10,340 per year and I said yes but this year it doesn't show any record of this. HELP!
Someone asked how I could have incurred such a large loss-well-I took a raw unimproved site and put in all the bells and whistles and ran it for a year. It doesn't take long to run up this type of debt. I would like to take the loss over a period of years but am not sure how to do this. My cpa hasn't been any help. Doesn't anyone have any knowledge of the tax law that turbo tax was talking about last year when I did my taxes? I can't afford another cpa!
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Comments on I had a large business loss last year How do I take the loss over a period of years-perhaps 6-10 years?
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you have two years to file taxes and how could any one have a lost of 100,000 on a coffee shop
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How you handle this situation depends on whether or not the coffee shop was incorporated. Seek the advice of a CPA.
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Were you a sole proprietor?
Net Operating losses are carried back 2 years on the 1040 and forward 20. The concept of income averaging disappeared in 1986.